Commentary: Does central banker have political ambitions?

BillMann

Or envision a major U.S. financial publication touting Bernanke as a possible Presidential — or, in this case, Prime Ministerial — candidate.

That’s exactly what’s been happening in Canada the past few months, the country’s central banker, Mark Carney, being hoist upon one pedestal after another.

The handsome, pleasant and even-keeled Carney even appeared on a recent flier for an upscale haberdashery chain. Fiscal fashion?

Carney, who’s never run for political office and has shown no sign he will (maybe he’ll be bank-drafted?) seems quite content to be the nation’s economic father figure, a symbol of Canada’s strong economy and sound banking system — and also, its stern-lecturer-in-chief, blasting big banks in the U.S. for taking risks and Canadian consumers for taking on too much debt.

Carney-mania may have reached a new high last week when Terence Corcoran, editor of the influential Financial Post, wrote a column exploring the possibility of a Prime Minister Carney with the headline of, well, “Prime Minister Carney?”

Corcoran said gossip — always a firm foundation for a story — has it that Carney has political ambitions and “may even have his long-term eye on the Prime Minister’s job.” Then again, for all we know, Carney may also have his eye on a new Volvo S80 sedan.

Granted, Canada’s current Prime Minister, the charisma-impaired Stephen Harper, does not exactly radiate, as Carney does, the assurance of a strong leader.

Carney, who’s also busy as the head of the Swiss-based Financial Stability Board (presumably for making Canada a model of financial stability and strong banks), got the “rock-star” label the other night when he received the Canadian Club of Toronto’s “Canadian of the Year” honor.

Of course, it doesn’t hurt Carney’s popularity these days in financial circles that he and Jamie Dimon aren’t exactly mutual fans, or that Carney is always lecturing U.S. and European banks on risk-taking. And Carney knows a thing or two about taking risk: He was once a pretty fair hockey goalie who never let a shot get by him in his short college ice career.

It’s been reported that Dimon went into an anti-Carney tirade last fall in a private meeting, blasting Carney’s successful global push for bank reform.

“The global banking system,” Carney said with some pride recently, possibly thinking of the pushy Dimon, “is becoming more Canadian.”

Carney, a Harvard- and Oxford-educated former global investment banker, was once a vice president of Goldman Sachs. He took over Canada’s top banking job five years ago, and says he has every intention of filling out his seven-year term. He joked at the Canadian of The Year banquet that his central-banking job has other benefits, like predictability — preset interest-rate and board meetings, and the occasional G-7 and G-20 get-togethers “usually allows me to be home by 5.” Why would he want to go out on the grueling campaign trail in such a huge country? .

It’s hard to imagine Bernanke showing up as a guest on Jimmy Fallon’s late-night show, but that’s essentially what Carney did a few months ago when he appeared on CBC-TV’s “The Hour” with its earring-wearing, moussed-up host, George Stroumboulopoulos. It was quite a change from the show’s usual guests — singers, actors and comedians. But Carney seemed quite comfortable, smiling knowingly when the host twice asked him about any political ambitions. Carney said evenly, “I want to serve to the end of my term.”

There have also been persistent rumors in the Canadian media about Carney being wooed to replace Mervyn King as governor at the Bank of England, but, like a good goalie, he’s easily deflected those, too.

Stroumboulopoulos asked Carney about his Harvard goaltending days — he now stops inflated bucks instead of small pucks — and Carney admitted his weakness was “stick side, low.”

So, if Canadian banks’ goal is to overleverage like their American counterparts, there’s your target zone. Good luck.

Carney then gave a goalie analogy on the CBC show, explaining, “Central backing is like hockey. You try to anticipate and react to circumstances. “

The recently disgraced Dimon’s shots at Carney obviously haven’t found the back of the net.

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